J.S. Johnson acquires 5,000 more policies through MetLife
J.S. Johnson and Company Ltd. will grow its portfolio to nearly 30,000 clients after taking over the servicing of an estimated 5,000 life insurance policies associated with U.S-based MetLife. The company is now eyeing cross-selling to these new clients.
The change will be effective on April 30 and will roughly increase the company’s portfolio by 10 percent, said J.S. Johnson’sExecutive Director of Life, Health and Benefits Department Barrett McDonald.
“We believe we have about 25,000 policy holders at the moment[and]probably around 2,500 policy holders of MetLife are already with us,”he toldGuardian Businessyesterday.”Opportunity knocks and when you’re prepared that’s really how you benefit. In this instance, despite market conditions and nevermind the intense level of competition, the one thing that kept us going is our connectivity with our clients.”
Because of the amount of work involved with servicing policy holders and the”little financial benefit”involved, McDonald said the general insurer did not have to pay for the acquisition.
“On its own, it’s labor intensive[and]requires a lot of following up,”he added.”There may be some convertible term policies where people add to their sums insured and that would be the only benefit from the portfolio.”
Instead, J.S. Johnson is focused on the direct marketing it could pitch to the roughly 2,500 new policy holders that are not already insured with them. Having that group already associated with the company offers the insurer the kind of targeted marketing that could go a long way in growing the other departments under its umbrella of offerings.
That kind of growth has been slow in recent years, as insurance companies throughout the country saw declines in both renewals and new policies. That’s to say nothing of the fall-off in policy payments for various benefits.
McDonald said access to potential growth alone was worth the acquisition.
“We are looking at it as good advertising value and while some of these clients are already affiliated with us, we believe there may be opportunities to cross sell to those that are not clients already,”he said.”Our primary business is general[and]we will look to impress these clients with excellent service and hope they are tempted to bring us more of their business.
“Their home insurance, their cars, their business, that’s the main advantage.”